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Ley Choon reports $10.9 mil net profit for FY2024 and first dividend payout since 2014

The group has benefited from higher construction activities in road works and cable laying projects.

Ley Choon Group has reported a net profit of $10.9 million for the FY2024 ended March 31, 2024, a 18.1% y-o-y increase from the same period a year before.

Following this, the group has announced a final dividend of 0.27 cents for FY2024. Based on its closing price of 5.9 cents as of May 24, it offers an implied dividend yield of 4.6%.

This is the group’s first dividend payout since 2014, according to Toh Choo Huat, executive chairman and CEO of Ley Choon.

The group’s revenue for the full year came in at $129.1 million, 4.2% higher y-o-y due to higher construction activities in road works and cable laying projects.


The group says that this was in line with the $33.8 billion worth of preliminary construction demand reported in 2023 by the Building and Construction Authority (BCA), which exceeded the forecast of $27 billion to $32 billion in early 2023.

For the full year, Ley Choon’s gross profit increased 28.9% y-o-y and gross profit margin expanded by 3.1 percentage points. This was primarily attributed to the favourable project mix with more higher-value construction activities being carried out.

As at March 31, the group has reported an unfulfilled order book of $258.5 million, which is roughly two times the revenue reported for FY2024. The amount will be progressively recognised over the next 24 to 36 months, according to the group.

As BCA expects construction demand over the medium term to range between $31 billion and $38 billion per year from 2025 to 2028, Ley Choon believes that the construction industry remains on an uptrend.

Toh Choo Huat, executive chairman and CEO of Ley Choon said: “The underground utility infrastructure sector in Singapore remains favourable over the midterm on the back of an ongoing replacement cycle at scale. As one of the key players in the industry, we are optimistic about replenishing and expanding our order book in the coming year.”

Earlier in March, the group completed its debt restructuring agreement ahead of its March 31, 2024 deadline.

“With the completion of our debt restructuring agreement in March 2024, we now have greater flexibility over our capital management to grow the business further,” Toh adds.

Shares in Ley Choon closed 0.1 cents higher or 1.695% up 6 cents.

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